Related papers: Spontaneous Economic Order
The dynamics of networks on Heider balance theory moves toward reducing the tension by constantly reevaluating the interactions to achieve a state of balance. Conflict of interest, however, is inherent in most complex systems; frequently,…
This paper studies the economic role of persistent dispersion in allocations across agents. We develop a tractable model in which firms allocate resources under imperfect information and behavioral updating, generating sustained…
We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…
Coevolution between strategy and network structure is established as a means to arrive at optimal conditions for resolving social dilemmas. Yet recent research highlights that the interdependence between networks may be just as important as…
The inefficiency of selfish routing in congested networks is a classical problem in algorithmic game theory, often captured by the Price of Anarchy (i.e., the ratio between the social cost of decentralized decisions and that of a centrally…
The definition of preferences assigned to individuals is a concept that concerns many disciplines, from economics, with the search of an acceptable outcome for an ensemble of individuals, to decision making an analysis of vote systems. We…
A model for economic behavior, under heterogeneous spatial economic conditions is developed. The role of selection pressure in a Bak-Sneppen-like dynamics with entity diffusion on a lattice is studied by Monte-Carlo simulation taking into…
This paper introduces a novel concept for addressing non-convexity in the cost functions of distributed economic model predictive control (DEMPC) systems. Specifically, the proposed algorithm enables agents to self-organize into a hierarchy…
We study competition among contests in a general model that allows for an arbitrary and heterogeneous space of contest design, where the goal of the contest designers is to maximize the contestants' sum of efforts. Our main result shows…
The optimal (`equilibrium') macroscopic properties of an economy with $N$ industries endowed with different technologies, $P$ commodities and one consumer are derived in the limit $N\to\infty$ with $n=N/P$ fixed using the replica method.…
Can a human society be constrained in such a way that self-organization will thereafter tend to produce outcomes that advance the goals of the society? Such a society would be self-organizing in the sense that individuals who pursue only…
We consider reallocation problems in settings where the initial endowment of each agent consists of a subset of the resources. The private information of the players is their value for every possible subset of the resources. The goal is to…
In this paper we study the so-called minimum income condition order, which is used in some day-ahead electricity power exchanges to represent the production-related costs of generating units. This order belongs to the family of complex…
In this paper a simple model is proposed to decribe the spontaneous formation of coalitions among a group of actors like countries. The basic ingredients are from the physics of disorder systems. It is the interplay of two different spin…
We consider an economy where agents' consumption sets are given by the cone $\mathbf{L}^0_+$ of non-negative measurable functions and whose preferences are defined by additive utilities satisfying the Inada conditions. We extend to this…
We consider a multi-organizational system in which each organization contributes processors to the global pool but also jobs to be processed on the common resources. The fairness of the scheduling algorithm is essential for the stability…
This paper links matching markets with aligned preferences to optimal transport theory. We show that stability, efficiency, and fairness emerge as solutions to a parametric family of optimal transport problems. The parameter reflects…
It is still common wisdom amongst economists, politicians and lay people that economic growth is a necessity of our social systems, at least to avoid distributional conflicts. This paper challenges such belief moving from a purely physical…
We study a heterogeneous agent macroeconomic model with an infinite number of households and firms competing in a labor market. Each household earns income and engages in consumption at each time step while aiming to maximize a concave…
How do shared conventions emerge in complex decentralized social systems? This question engages fields as diverse as linguistics, sociology and cognitive science. Previous empirical attempts to solve this puzzle all presuppose that formal…